Alberto-Culver Co. F1Q09 (Qtr. End 12/31/2008) Earnings Call Transcript

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2009-01-26 13:42:10.0

Tags: Retail Company, Call Transcript, Earnings, UBS AG, Alberto-Culver Co., Retail, Sales Strategy, Sales, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Your first question sir comes from the line of Nik Modi. Your line is open.

Nik Modi - UBS

Good morning everyone.

Jim Marino

Hi Nik, how are you?

Nik Modi - UBS

All right. Happy New Year.

Jim Marino

Same to you.

Nik Modi - UBS

Thanks. Just two quick questions. Just curious about the retailers responsiveness on your January price increase. Are they asking you to trade spend some of that back somewhere, just curious how they react to that? And then, the second question is, in terms of TRESemmé 24 Body and Nexxus, they released a few new product launches this year, how has the retailer responded to those in terms of incremental shops space et cetera? Thanks.

Jim Marino

Okay, Nik. First on the price increase, you know it is very early on, but I will say we have had no issues with our retail customers with respect to the increase. I don't think it's going to be the retailer quite frankly that's going to put pressure on us in terms of pricing. If we get pressure, it will be consumer pressure, not customer pressure. So, we'll monitor that very, very closely, we'll do the right things and take action appropriately if and when necessary. In terms of TRESemmé 24 Hour Body in due released, the response from our customers has been very, very good.

We are gaining great distribution on both of those new initiatives. In fact, in two of our major drug chains I think you will see them both already in the planograms, so if you happen to be in the Walgreen or CVS stop by and see our position. We are very, very pleased. All in all, when you take our new initiatives, when you take in to consideration, everything else that we've been pushing for in terms of planogram changes, we will end up with more retail geography after these planograms are set then we had before. So we are very, very happy.

Nik Modi - UBS

And just a quick small question, Jim.

Jim Marino

Sure.

Nik Modi - UBS

On the de-stocking that, most consumer companies are talking about these days. I mean you had some pretty dynamic sales growth, just curious if you've seen any of that in any of your hair care, skin care categories and if you could just kind of give us the magnitude?

 

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